Credit Report Help by Bankruptcy Ontario

Here are the steps you can follow to deal with problems on your credit report.

1. Get a copy of your credit report

In most cases you can obtain your credit report for free. There are two main credit bureaus in Canada: Equifax and Trans Union. Look in your phone book for the location nearest you, or call their main offices at:

Equifax (1-800-465-7166)
Trans Union (1-800-888-4213)

NOTE: Under Ontario law they must give you one free copy of your credit report each year; you are not required to pay for it.

2. Review your credit report

When you receive your credit report, review it to determine if it contains any errors or negative comments. Amazingly, it is very common for errors to appear on your credit report, and that can effect your ability to borrow in the future.

An error may include a debt that you have already repaid (see #3 below). A negative comment may result from a department store credit card that you stopped using ten years ago, but if it had a $10 balance owing, it may still show up on your credit report (see #4 below).

3. Correct any errors on your credit report

If you find an error, contact the credit reporting agency and provide proof that you do not owe the money. (Your credit report will include an error reporting form that you can fill out and mail back to them). You may need a letter from the creditor indicating the payments were made, or you may provide canceled cheques to indicates payments were received.

You may also send a letter to the credit bureau explaining your side of the story; your comments can be attached to your credit report.

4. Repair any negative information in your credit report

If you owe a creditor $10 and they have filed a negative credit report with the credit bureau, repay the creditor and ask the creditor to remove the negative credit report from your credit record. If a debt is legally owing, the debt must be paid or discharged before it can be removed from your credit report. There are no easy ways to remove accurate information from a credit report.

5. Repay your debt to clean up your credit report

Even if your credit report indicates that you have made all of your regular monthly payments, a potential lender may look unfavorably on high levels of debt. The solution is to pay off as much of your existing debt as possible before applying for a new loan.

We recommend that you pay off your highest interest debts first, so pay the 18% interest credit card off first, and then repay the 16% interest credit card.

6. Take other action

If you have more debt than you can possibly repay, your credit report will only improve by formally dealing with your debts. You may need to file a formal proposal to your creditors, or consider personal bankruptcy.

For further assistance, please contact a nearby expert for advice.